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Key lobby drops demand for U.S. mortgage interest tax deduction

From Reuters - October 3, 2017

WASHINGTON (Reuters) - The trade group representing U.S. homebuilders has abandoned its demand that a new version of the tax code include a mortgage interest deduction, signaling on Tuesday that it would consider alternatives to boost home ownership.

The National Association of Home Builders had raised concerns about the Republican plan to overhaul the tax code because it would have effectively done away with the mortgage interest deduction for millions of taxpayers. That tax deduction is viewed as a critical incentive to encourage home buying.

NAHB, whose members include D.R. Horton Inc (DHI.N), Lennar Corp (LEN.N) and KB Homes (KBH.N), said it is willing to rally behind a proposal that drops the mortgage interest tax deduction as long as it offers a homeowners tax credit.

Now our policy is much more flexible, said Jerry Howard, president of NAHB. It gives us a unique opportunity to help craft a unique tax policy as it is related to housing.

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